12th MARCH 2008 BUDGET PROPOSALS
AND CHANGES FOR 2008/2009 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

10.1 The trust tax rate remains at 40% and the dividend trust rate at 32.5%.

10.2 The Capital Gains Tax rate for all trusts decreases to 18% from 6th April 2008, in line with the new CGT regime being introduced.

10.3 Income distributions are received with the benefit of a tax deduction of 40%. Any difference between each beneficiary’s top rate and 40% is recoverable.  

10.4 The standard rate band applying to the first £1,000 of income for all trusts liable to the trust tax rate remains the same.